Once again, Bitcoin (BTC) has stagnated, finding a foothold around $10,000 for the umpteenth time in a matter of weeks. While this is a positive development, especially considering the bearish momentum seen last week, there remains some expecting for the cryptocurrency market to continue lower.
As reported by NewsBTC, one prominent crypto analyst suggested that Bitcoin could experience a dump comparative to the November 2018 drop, should BTC’s symmetrical triangle break down.
Such a bearish could bring BTC back down to the $6,000s, where the cryptocurrency famously stood its ground for months on end in summer 2018.
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However, Murad Mahmudov, a founding partner of cryptocurrency fund Adaptive Capital, has argued that the end is nigh for bears, not for bulls.
Bitcoin Ready to Head Back Up
The past few weeks have been extremely tumultuous for the cryptocurrency market. After Bitcoin broke its uptrend in late-June, bears have managed to take control of the market, killing bullish momentum. The cryptocurrency has only seen lower highs and lower lows, suggesting the formation of a downtrend.
But, Mahmudov, one of the most well-respected analysts in the industry, recently argued that $9,080, which Bitcoin hit a number of weeks back, is the short-term bottom for this phase of the cycle.
Contrarian view: 9080 was the bottom, ~one more month of sideways then we continue steadily upwards.
Don’t fight a once-in-a-millenium, civilization-changing phenomenon to try to snag a potential 8% off of a local short.
Don’t fight the trend.
Submit to it.
Embrace it. pic.twitter.com/bq7TsK4xZ4— Murad (@MustStopMurad) August 23, 2019
In a tweet which he headlined “Contrarian view”, the former Goldman Sachs analyst explained that from how he sees it, Bitcoin is most likely to test $9,750 — the 0.618 Fibonacci Retracement of this whole cycle — in the following month in a bout of sideways price action, then “continue steadily upwards.
He backed his prediction by looking to August 2016, when BTC was in a similar situation then as it is now: BTC had just rallied out of a bear market, but bears wanted one last hurrah. Then, Bitcoin tested its 0.618 Fibonacci Retracement prior to skyrocketing higher.
Also back in 2016, trend indicators, like historical volatility and the Relative Strength Index (RSI), hit certain levels that they are trending to at this moment.
Should history repeat, Bitcoin is likely to bounce, then embark on a run to fresh all-time highs in the coming months.
Not The Only Bottom Caller
Mahmudov isn’t the only one currently calling for a bottom.
Speaking to Forbes contributor Benjamin Prius, Bollinger Band creator John Bollinger, who purportedly forayed into cryptocurrency some three years ago, explained that he is under the belief that Bitcoin and its ilk are “working on trying to forge a short-term tradable bottom”.
Bollinger stated that while the bottoming “process is [not] completed yet,” he is currently eyeing a range of “someplace between $10,000 and $9,000” for BTC to find a low.
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